Anand Rathi Sub Broker Program is well known in the broking industry. Considering the big name in financial market, the sub brokers / authorized person usually give preference to Anand Rathi over other small size broking companies.

It has very basic models which are easy to understand and execute and supports the business partners in operating in multiple segments. This article discusses about the models available, the revenue sharing in each model, the deposit requirement, the support that Anand Rathi provides and other such softer aspects.

Anand Rathi was set up in year 1994 and is considered as a top firm for offering premium services like wealth and investment management, corporate finance and advisory. It has its offices in more than 1200 locations and international presence in Dubai. It employs a workforce of 2500+ professionals.

Anand RathiFranchise Customer Ratings

Anand Rathi Franchise

Criteria

Ratings

Experience

2.8/5

Services

2.7/5

Products

2.6/5

Trading Platforms

2.7/5

Support

2.8/5

Revenue Sharing Model

2.9/5

Security Deposit

2.5/5

Offers

2.4/5

Market Share

2.6/5

Overall

2.7/5

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Types of Anand Rathi Sub Broker/ Authorised Person

Anand Rathi offers the following two types of business partnership models to associates:

Sub broker or Authorised Person

Remisier

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Anand Rathi Sub broker or Anand Rathi Authorized Person

Anand Rathi is a big name in the broking business and it has maintained its repute by ensuring a strict parameter for associating with business partners. The broking house looks into various other qualitative aspects like repute and network of the business partner apart from the projected revenue and the client base.

As against the strict parameters, it also ensures that its partners get to reap benefits of its repute and allows a good sharing ratio. The revenue sharing ratio ranges from 50% to 80%. The investment amount prescribed for this model ranges from Rs. 2 lacs to Rs. 3 lacs

Anand Rathi Remisier

Anand Rathi remisier model is also referred to as zero infrastructure cost model. The remisier is not required to make any investments as such- it merely needs to connect the potential clients with the team of Anand Rathi and help Anand Rathi in expanding its customer reach by word of mouth and network.

While appointing remisier, it mandates an experience of 2-3 years in financial market and hence ensures that only quality people are associated with the brand. The investment amount thus is zero and the revenue sharing ratio ranges from 20% to 30%. This is further discussed in paras below.

Anand Rathi Franchise Commission or Revenue Sharing Model

Anand Rathi has prescribed a criteria that all the business partners (sub broker or AP and remisier) should have minimum of 2-3 years of experience with good client base. This is a mandatory requirement. They also undertake background check of the candidate to ensure that the business partner has a good credibility in market and is safe to represent the brand in the market.

The revenue sharing model of Anand Rathi Sub Broker Program has been very much in line with the industry rates. The revenue sharing ratio for the sub broker or the AP model ranges between 50% to 80%.

This depends upon various factors like the performance of the sub broker, the revenue base, the client credibility, the repute of sub broker, sub broker’s and their customer’s default rates, investment amount, city, number of experience etc.

One should also try and bargain on the ratio as there is no fixed matrix for deciding the ratio. It is decided on the basis of such softer aspects and hence there is always a scope to bargain on the ratio. One can also consider the option of revising the ratio after a few months.

For a remisier, the revenue sharing ratio of Anand Rathi ranges between 20% to 30%. This can said to be competitive with the industry range. Since a remisier’s role is very limited, the revenue sharing ratio is also less as compared to a sub broker or an AP.

Anand Rathi Franchise Cost or Security Deposit Amount

Anand Rathi has prescribed the initial investment amount at a higher side as compared to other broking houses in the market. The initial investment amount for a sub broker or authorized person is Rs. 2 lacs to Rs. 3 lacs. They also specify that if there is a need one should be able to expand their infrastructure and resources to serve the clients appropriately.

This amount includes the infrastructure that one needs to maintain like office, work space, employees, workstations, trading terminal etc. This also includes certain component of security deposit which is refundable at the time of termination of the agreement.

For a remisier, the initial investment is NIL. However, a remisier is required to pay a security deposit at the beginning of the agreement. The deposit amount varies from Rs. 20,000 to Rs. 50,000 depending upon the client base and the revenue projected. Further, the company also offers infrastructure support to a remisier like trading terminal with required software, a dealing desk, phone set and research support along with back office support.

Step 4 – Discuss the terms and conditions of the proposal with Anand Rathi Team. Ensure that all the aspects are discussed during the meeting.

Step 5 – Provide the required documents to Anand Rathi Team. Also provide the payment of deposit and registration fee wfor registering with stock exchange, if not already registered.

Step 6 – Anand Rathi Team will verify the documents. If any deficiency is mentioned by them, ensure that the same is corrected at the earliest.

Step 7 – After Anand Rathi Sub Broker Team verifies the documents, they will draft an agreement. Read that agreement carefully and then sign it. This agreement will then be submitted to the stock exchange and you will be registered as an Anand Rathi Franchise.